Sohu.com, Inc. (NASDAQ: SOHU) reported Q1 EPS of ($1.39), $0.14 better than the analyst estimate of ($1.53). Revenue for the quarter came in at $431 million versus the consensus estimate of $404.92 million.

First Quarter Highlights

• Total revenues were US$431 million[1], down 5% year-over-year and 11% quarter-over-quarter.
• Brand advertising revenues were US$43 million, down 24% year-over-year and 25% quarter-over-quarter.
• Search and search related advertising revenues[2] were US$234 million, up 6% year-over-year and down 15% quarter-over-quarter.
• Online game revenues were US$99 million, down 6% year-over-year and up 5% quarter-over-quarter.
• Excluding a US$6 million impairment of intangibles via acquisitions of businesses (net of tax effects) recognized in this quarter, operating loss for Sohu Video was US$27 million, compared with a loss of US$48 million in the first quarter 2018.
• GAAP net loss attributable to Sohu.com Limited was US$57 million, compared with a net loss of US$93 million in the first quarter of 2018.
• Non-GAAP net loss attributable to Sohu.com Limited was US$55 million. Excluding the effect of the aforementioned impairment of intangibles via acquisitions of businesses, net of tax effects, Non-GAAP net loss attributable to Sohu.com Limited was US$48 million, compared with a net loss of US$97 million in the first quarter of 2018.
• Further excluding the profit/loss generated by Sogou and Changyou, the Non-GAAP net loss attributable to Sohu.com Limited was US$72 million, compared with a net loss of US$93 million in the first quarter of 2018.

GUIDANCE:

Sohu.com, Inc. sees Q2 2019 EPS of ($1.20)-($0.95), versus the consensus of ($1.49). Sohu.com, Inc. sees Q2 2019 revenue of $469-494 million, versus the consensus of $450.6 million.

Business Outlook

For the second quarter of 2019, Sohu estimates:

• Total revenues to be between US$469 million and US$494 million.
• Brand advertising revenues to be between US$47 million and US$52 million; this implies an annual decrease of 15% to 24% and a sequential increase of 9% to 21%.
• Sogou revenues to be between US$303 million and US$313 million; this implies an annual increase of 1% to 4% and a sequential increase of 20% to 24%.
• Online game revenues to be between US$90 million and US$100 million; this implies an annual decrease of 5% to an annual increase of 6% and a sequential decrease of 9% to a sequential increase of 1%.
• Non-GAAP net loss attributable to Sohu.com Limited. to be between US$38 million and US$48 million, and non-GAAP loss per fully-diluted ADS to be between US$0.95 and US$1.20. GAAP net loss attributable to Sohu.com Limited to be between US$40 million and US$50 million, and GAAP loss per fully-diluted ADS to be between US$1.00 and US$1.25.
• Excluding the profit/loss generated by Sogou and Changyou, Non-GAAP net loss attributable to Sohu.com Limited. to be between US$65 million and US$70 million, GAAP net loss attributable to Sohu.com Limited to be between US$67million and US$72 million.

For the second quarter 2019 guidance, the Company has adopted a presumed exchange rate of RMB6.80=US$1.00, as compared with the actual exchange rate of approximately RMB6.38=US$1.00 for the second quarter of 2018, and RMB6.74=US$1.00 for the first quarter of 2019.

For earnings history and earnings-related data on Sohu.com, Inc. (SOHU) click here.